MIRA
INFORM REPORT
|
Report Date : |
17.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SYNCHEM INTERNATIONAL CO LTD |
|
|
|
|
Registered Office : |
Room 3208-3209 World Trade Center, No. 25 Tongxing Street, Zhongshan District, Dalian, Liaoning Province,
116001 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
31.07.1998 |
|
|
|
|
Com. Reg. No.: |
2102421100722 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
International
Trade. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
usd 130,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
Name & address
SYNCHEM INTERNATIONAL CO., LTD.
ROOM 3208-3209 WORLD TRADE CENTER, NO. 25 TONGXING STREET,
ZHONGSHAN DISTRICT, DALIAN, LIAONING PROVINCE, 116001 PR CHINA
25 3208/3209
TEL: 86
(0) 411-82530333 FAX: 86 (0)
411-82530108
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 31, 1998
REGISTRATION NO. : 2102421100722
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 114,350,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 10,480,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 130,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.86= USD1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a limited liabilities company at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Jul. 31, 1998.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co
SC’s registered business scope includes importing and exporting various
goods and technology.
SC is mainly
engaged in international trade.
Mr. Wu Tieping has
been chairman of SC since 1998.
SC is known
to have approx. 10 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Dalian. Our checks reveal that SC
rents the total premise about 180 square meters.
http://www.synchemco.com
. The design is professional and the content is well organized. At present it
is in English version.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Xinchang Synthesis Chemical Factory
80
Wu Tieping 20
Zhejiang Xinchang Synthesis Chemical Factory
=================================
Add: No. 4 North Zhenjiang Road, Xinchang
County Zhejiang Province
4
Tel: 86 05756125377
l
Chairman and General Manager:
Mr. Wu Tieping, in his 40’s with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 1998 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products mainly
include:
1. Vitamins
2. API and
pharmaceutical intermediates
3. Construction
chemicals
4. Biocides
5. Food/feed
additives
6. Textile
additives
SC sources its
materials 100% from domestic market. SC sells 100% of its products to the
overseas market, mainly India and Southeast Asia.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
============
Zhejiang Xinchang Synthesis Chemical Factory
SC is
not known to have any subsidiary at present.
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average
( ) Fair (
) Poor ( ) Not yet determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment
experience (through current enquiry with SC's suppliers), our delinquent
payment and our debt collection record concerning SC.
Trade payment experience: SC’s suppliers
declined to make any comments.
Delinquent
payment record: None in our database.
Debt collection record: No overdue amount owed by SC was placed to us for
collection within the last 6 years.
China Construction Bank Free Trade Zone Sub-branch
AC#
21201502300050008002
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
|
Cash & bank |
7,090 |
8,230 |
|
Inventory |
1,700 |
4,580 |
|
Accounts
receivable |
8,280 |
12,350 |
|
Advances to
suppliers |
0 |
0 |
|
Other
receivables |
360 |
470 |
|
Other current
assets |
7,150 |
13,860 |
|
|
------------------- |
------------------ |
|
Current assets |
24,580 |
39,490 |
|
Fixed assets net
value |
710 |
520 |
|
Projects under
construction |
0 |
0 |
|
Long term
investment |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
25,290 |
40,010 |
|
|
============ |
============= |
|
Short loans |
0 |
0 |
|
Accounts payable |
14,810 |
16,260 |
|
Advances from
clients |
0 |
0 |
|
Taxes payable |
100 |
-110 |
|
Salaries payable |
0 |
0 |
|
Other payable |
40 |
20 |
|
Other current
liabilities |
270 |
13,360 |
|
|
------------------- |
------------------ |
|
Current
liabilities |
15,220 |
29,530 |
|
Long term
liabilities |
0 |
0 |
|
|
-------------------- |
------------------ |
|
Total
liabilities |
15,220 |
29,530 |
|
Equities |
10,070 |
10,480 |
|
|
------------------- |
------------------ |
|
Total
liabilities & equities |
25,290 |
40,010 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2007 |
|
Turnover |
114,350 |
|
Cost of goods
sold |
110,160 |
|
Sales expense |
1,300 |
|
Management expense |
1,780 |
|
Finance expense |
1,380 |
|
Profit before
tax |
660 |
|
Less: profit tax |
260 |
|
Profits |
400 |
Important Ratios
=============
|
|
2006 |
2007 |
|
*Current ratio |
1.61 |
1.34 |
|
*Quick ratio |
1.50 |
1.18 |
|
*Liabilities
to assets |
0.60 |
0.74 |
|
*Net profit
margin (%) |
/ |
0.35 |
|
*Return on
total assets (%) |
/ |
1.00 |
|
*Inventory
/Turnover ×365 |
/ |
15days |
|
*Accounts
receivable/Turnover ×365 |
/ |
39days |
|
*Turnover/Total
assets |
/ |
2.86 |
|
* Cost of
goods sold/Turnover |
/ |
0.96 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in 2007.
l
SC’s net profit margin is average in 2007.
l
SC’s return on total assets is average in 2007.
l
SC’s cost of goods sold is fairly high in 2007, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in 2006 and
2007.
l
SC’s quick ratio is maintained in a normal level in 2006 and 2007.
l
The accounts receivable of SC is average in 2007.
l
The inventory of SC is average in 2007.
l
SC has no short loans in both 2 years.
l
SC’s turnover is in a fairly good level in 2007, comparing with the size
of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in 2006 and fairly high in 2007.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered small-sized in its line with stable financial
conditions. Credit dealings of small amount can be considered for it at
present.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 42.78 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.67.90 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)